SigmaTron shares short circuit

Shares for SigmaTron International Inc. were sharply lower Monday after the company reported a drop-off in fiscal fourth quarter earnings.

The Elk Grove Village-based contract manufacturer of printed circuit board and other electronic products reported earnings per share of 29 cents in the quarter ended April 30, a 58% decline from the year-earlier period when SigmaTron earned 69 cents per share. The company did not provide total net income figures for the quarter. Revenue slipped to $25.2 million vs. $29 million in the fourth quarter 2003.

For the full year, SigmaTron had net income of $5.4 million, or $1.53 per share, compared with $5.7 million to $1.7 million or $1.70 per share in the previous year. Revenues declined 5% to $100.4 million from $106 million.

After opening at $11.40, SigmaTron shares slipped to an interday low of $10.43. The shares were last down about 72 cents, or 6.25%, at $10.80.

Company executives refused to discuss the reasons for the drop in earnings. An earnings release alluded to increased costs for insurance and regulatory requirements. The company also said it was forced to restate previous earnings to accommodate the results from its 42.5% ownership interest in California-based SMT Unlimited LP.

Going forward, SigmaTron cited the Sarbanes-Oxley disclosure law for public companies and a move toward greater use of lead-free solder as some of the challenges facing the company.